Q2 17 – Another quarter with high operational EBIT per kg

Today Norway Royal Salmon (NRS) reports the second highest quarterly operational EBIT per kg in the history of the group. Operational EBIT for the second quarter of 2017 was MNOK 136 and EBIT per kg was NOK 30.17. Corresponding figures for the same quarter last year were MNOK 168 and NOK 25.33.

- The reason for the good quarterly result is high salmon prices, and that Region South and the Sales business deliver strong results, says CEO Charles Høstlund.

Operational cash flow was NOK 203 in the quarter. During the quarter, the Group's net interest-bearing debt increased by MNOK 214 to MNOK 594, after distributing a dividend of MOK 408 million. Equity by the end of the quarter is MNOK 1 805, which equates an equity ratio of 45.4 per cent. Return on capital employed for the last four quarters is 48.5 per cent.

Region North

Region North posted an operational EBIT of MNOK 107.8 in the quarter, compared with MNOK 165.6 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 29.68, compared with NOK 30.28 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 50.0 in the quarter, compared with MNOK 21.4 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 31.30, compared with NOK 11.18 in the corresponding quarter last year.

NRS harvested 5 231 tonnes gutted weight during the quarter, which is 29 per cent lower than in the same quarter last year. 3 633 tonnes of the total volume were harvested in Region North and 1 598 tonnes in Region South. Estimated harvest volume is 34 000 tonnes for 2017, an increase of 27 per cent from 2016. 11.7 million smolts are planned released in 2017.

The sales business sold 17 318 tonnes salmon during the quarter, an increase of 11 per cent from the corresponding quarter last year. The sales business had a good price achievement in the quarter.

 - NRS has a strong focus on growth and utilization of our production capacity and has 48 per cent higher biomass in the sea compared to the end of the same quarter last year, says Charles Høstlund.

For more information, please contact:

·       CEO Charles Høstlund, +47 994 18 449

·       CFO Ola Loe, +47 911 79 411.

Quarterly report Q2-17

Quarterly presentation Q2-17 

Norway Royal Salmon in brief

Norway Royal Salmon (NRS) group owns 35 fish farming licenses, and is a minority shareholder in three associated Norwegian fish farming companies which together own ten fish farming licenses, as well as Arctic Fish on Iceland. NRS is an attractively positioned fish farming group, which through an extensive network of collaborating enterprises and in-house production units, offers salmon to the market through its own sales organisation. For further details, please visit www.norwayroyalsalmon.com.